BofA looking to expand in China

Bank of America (BofA) (BAC.NYSE) will seek regulatory approval from China to expand operations, the Wall Street Journal reported, citing anonymous sources. BofA, the largest US bank by assets, entered China in 2004 but still lags behind most of its rivals in China. At present it has permission to handle a limited range of lending and investment banking services. BofA executives are also considering incorporating in China to facilitate approval. Beijing requires banks to inject a minimum of US$146.59 million in registered capital but BofA has not stated how much it would invest in a Chinese subsidiary. Sources familiar with the matter said BofA is more likely to focus on commercial banking services, as opposed to the retail banking services that are its main revenue source in the US.